Texarkana Gazette

Some companies to invest in before the start of the new year

- By Andrew Lisa GOBankingR­ates.com

If you’re having trouble figuring out which stocks and companies to invest in before 2017 arrives, consider these picks from a group of experts:

GENERAL MOTORS (GM)

Stock price (all listed as of Sept. 13): $30.94 “Investors will never forget GM’s dark history,” said Brian Bollinger, president of Simply Safe Dividends. “The U.S. government spent about $50 billion to bail out the company during the financial crisis. … Fortunatel­y, today’s GM is much improved.”

In the second quarter of 2016, GM reported net income of $2.9 billion, an increase of a whopping 157 percent.

“General Motors and its (approximat­ely) 4.8 percent dividend yield appear to offer an interestin­g combinatio­n of income and value for investors,” said Bollinger. “While vehicle sales can be volatile, today’s GM is better prepared to ride the cycle.”

ARISTA NETWORKS (ANET)

Stock price: $80.73

Arista Networks provides “software-driven cloud networking solutions for large data center storage and computing environmen­ts,” according to its website. And, it might be a good company to invest in before 2017.

“What stands out right away is Arista’s relative strength versus the S&P 500,” said Adam D. Koos, a financial planner with Libertas Wealth Management Group. “While the stock didn’t fare so well during the Brexit flash crash, it never transition­ed into a downtrend. And since then, (it) has maintained the strength it’s been building since February. Through the end of the year, I think the deck is stacked in the long investor’s favor.”

Arista reported revenue of $268.7 million in second quarter 2016, an 11 percent increase over the previous quarter and an increase of a full 37.4 percent from second quarter 2015.

PHYSICIANS REALTY TRUST (DOC)

Stock price: $19.90

Koos also picked Physicians Realty Trust, a health care real estate investment trust that manages and leases health care properties, as one of the best companies to invest in.

“What I really like about DOC right now is that it’s in an uptrend both on a short- and intermedia­te-term basis,” he said. “But it’s also pulled back nicely, offering an inexpensiv­e entry point, which increases risk and reward for the investor. … With that all said, assuming DOC can hold on through Election Day, I think this could be a good position to own—especially through the end of the year.”

According to its second-quarter financial results report, DOC revenue is up 79 percent year-over-year for a total of $53.2 million.

NEWMONT MINING (NEM)

Stock price: $39.02

Newmont Mining, a large gold producer, could be affected if the Federal Reserve increases interest rates, said Koos.

“Mining stocks have been chopping sideways over the last two months as investors await the Fed’s decision on whether to raise rates in September,” he said. “If rates go up—and I don’t think they will—then the increase in yields would hurt metals and mining company prices as money left these assets and moved into fixed income.”

But, “if rates remain unchanged again—as I assume they will—then there is a high probabilit­y that NEM will catch a bid, at least through the election and until the December Fed meeting,” he added.

AMERICAN WATER WORKS (AWK)

Stock price: $72.96

“Solid dividend payers like AWK will continue to command a premium in the market as investors are looking for any type of stable yield,” said investment instructor and small-cap stock expert Jason Bond. “AWK is growing well through accretive acquisitio­ns and is producing a strong ROE near 10 percent.”

Plus, this company is big. In fact, it’s the “largest and most geographic­ally diverse publicly traded U.S. water and wastewater utility company,” serving approximat­ely 15 million people in 47 states and in Ontario, Canada, according to its fact sheet.

21ST CENTURY FOX (FOXA)

Stock price: $23.71

21st Century Fox is a household name and might also be one of the best companies to invest in this year and next year.

“FOXA is a stock that we recently bought in our longterm portfolio,” said Bond. “Based on 9 percent revenue growth and an estimated 12 percent earnings growth between 2016 and 2017, we feel confident that this stock is a great investment. … Plus, the upcoming presidenti­al election should provide a strong revenue boost and expand overall viewership.”

The company has a strong dividend payout ratio of 21 percent and market cap of more than $25 billion. And if you’re looking for a short-term investment option, 21st Century Fox might be the best pick for you, along with these 11 stocks.

KINDER MORGAN (KMI)

Stock price: $21.86

According to its website, this is the “largest energy infrastruc­ture in North America,” owning interest or operating more than 80,000 miles of pipelines that transport natural gas, crude oil and more.

“While oil is changing hands today at roughly the same price it was in March, KMI is exhibiting relative strength versus its commodity counterpar­ts,” said Koos. “Whenever we’re buying any sort of investment—whether it be a stock, commodity, bond or currency—we want its trend to be positive, for it to exhibit strength versus the market and relatable assets, and for it to ideally be in the midst of a pullback within the prevailing uptrend.

“While I’d really like to see it fall another 1 percent to 2 percent before pulling the trigger,” added Koos, “I don’t think buyers would hurt themselves placing a trade here.”

HD SUPPLY HOLDINGS INC. (HDS)

Stock price: $31.23

Although this large North American industrial distributo­r might be “down from prior guidance of 300 basis points, the company stated that the reduced guidance implies fiscal year 2016 revenue growth of between 3 percent and 6 percent,” said Nicholas Wesley Yee, a certified public accountant and director of research at Gradient Analytics. “The company’s implied top line performanc­e for fiscal year 2016 is still better than what the consensus was expecting.”

Newspapers in English

Newspapers from United States